Exam 3: Selecting a Form of Business Ownership

A corporation pays taxes on its earnings.When the earnings are distributed as dividends, the shareholders pay taxes on these dividends.This is called _____.

(Multiple Choice)

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Question 21

_________are earnings distributed to shareholders by a corporation.

(Multiple Choice)

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Question 22

If the three brothers form a limited partnership, all three could be limited partners and therefore limit their liability.

(True/False)

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Question 23

A business that is owned and controlled by those who use its services is called a cooperative.

(True/False)

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Question 24

A corporation is a legal entity that is entirely separate from the parties that own it.

(True/False)

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Question 25

The problem with general partnerships is:

(Multiple Choice)

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Question 26

The most important benefit of incorporation is the limited liability to which the owners are exposed.

(True/False)

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Question 27

An S-corporation would give them a more favorable tax treatment than a regular corporation.

(True/False)

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Question 28

The sole proprietor supplies all the different talents needed to make the business a success.

(True/False)

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Question 29

In deciding which legal form of business ownership to choose, these professionals must ask themselves all of the following questions _____.

(Multiple Choice)

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Question 30

There are pros and cons for sole proprietorships and partnerships, but not for corporations.

(True/False)

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Question 31

They would most likely form a public corporation.

(True/False)

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Question 32

A rationale behind mergers and acquisitions is to grab a bigger share of the market and improve profitability.

(True/False)

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Question 33

Bob Grange has just opened a new pet shop on Main Street.If he selected the easiest and cheapest legal form to start a business, what legal form would Bob Have selected?

(Multiple Choice)

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Question 34

The most common type of business ownership in the United States is the sole proprietorship, which has one owner.

(True/False)

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Question 35

If you want to own the business yourself, you might consider setting up as a(n)__________.

(Multiple Choice)

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Question 36

Companies are motivated to merge or acquire other companies for a number of reasons, including gaining complementary products.

(True/False)

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Question 37

In a limited partnership the limited partners' losses are limited to their investment in the business and not their personal assets.

(True/False)

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Question 38

What benefit will Jerry enjoy over the years as the sole owner of his canoe renting company?

(Multiple Choice)

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Question 39

A _____ is a business owned and operated jointly by two or more people.

(Multiple Choice)

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Question 40

Showing 21 - 40 of 148

A corporation pays taxes on its earnings.When the earnings are distributed as dividends, the shareholders pay taxes on these dividends.This is called _____.

_________are earnings distributed to shareholders by a corporation.

If the three brothers form a limited partnership, all three could be limited partners and therefore limit their liability.

A business that is owned and controlled by those who use its services is called a cooperative.

A corporation is a legal entity that is entirely separate from the parties that own it.

The problem with general partnerships is:

The most important benefit of incorporation is the limited liability to which the owners are exposed.

An S-corporation would give them a more favorable tax treatment than a regular corporation.

The sole proprietor supplies all the different talents needed to make the business a success.

In deciding which legal form of business ownership to choose, these professionals must ask themselves all of the following questions _____.

There are pros and cons for sole proprietorships and partnerships, but not for corporations.

They would most likely form a public corporation.

A rationale behind mergers and acquisitions is to grab a bigger share of the market and improve profitability.

Bob Grange has just opened a new pet shop on Main Street.If he selected the easiest and cheapest legal form to start a business, what legal form would Bob Have selected?

The most common type of business ownership in the United States is the sole proprietorship, which has one owner.

If you want to own the business yourself, you might consider setting up as a(n)__________.

Companies are motivated to merge or acquire other companies for a number of reasons, including gaining complementary products.

In a limited partnership the limited partners' losses are limited to their investment in the business and not their personal assets.

What benefit will Jerry enjoy over the years as the sole owner of his canoe renting company?

A _____ is a business owned and operated jointly by two or more people.

The Foundations of Business

Entrepreneurship

Business Ethics and Social Responsibility

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Product Design and Development

Operations Management in Manufacturing and Service Industries

Business in a Global Environment

Marketing: Providing Value to Customers

Operating in a Digital Marketing and Social Networking

The Role of Accounting in Business

Managing Financial Resources

Teamwork and Communications

Personal Finances

Managing Information and Technology

The Legal and Regulatory Environment of Business

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